Exercise $19-9($Algo$)$ Absorption costing and variable costing income statements LO P$2$

Rey Company's only product sells for $$234$ per unit. Data for its first year of operations follow.

Direct materials

Direct labor

Variable overhead

$$38$ per unit

$$46$ per unit

Fixed overhead

$$6$ per unit

Variable selling and administrative expenses

$$196,000$ per year

Fixed selling and administrative expenses

$$36$ per unit

Units produced and sold

$$236,000$ per year

$24,500$ units

Prepare an Income statement for the year using absorption costing

Prepare an Income statement for the year using varlable costing.

Complete this question by entering your answers in the tabs below.

Required $1$

Prepare an income statement for the year using variable costing.